DXY is near a medium-term bottom • Edge of trading a place for traders

The U.S. Dollar Index (DXY) has recently experienced significant downward pressure, reaching its lowest levels since early 2022. As of June 27, 2025, the DXY fell to 97.1, marking a nearly 2% decline for the week and a 12% drop from its year-to-date high of 110.13. Key drivers include:

Federal Reserve Policy Shifts: Expectations of Federal Reserve rate cuts have intensified following dovish remarks from Chair Jerome Powell during congressional testimony. Reports suggest President Donald Trump may announce a new Fed Chair as early as September or October, raising concerns about the Fed’s independence and further weakening the dollar

DXY is testing the channel support at 96.80. Next support, which can also be tested, is 95.40. A bounce from here is required for a reversal higher and an upside correction. Below 93, we would see a deep downside extension. DXY is still medium-term bullish. Learn to Trade stocks profitably.

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The DXY weekly chart is revealing a strong channel support of 96.50. A 95-96.50 zone of the support needs to hold for a reversal higher. This is a multi-month channel that is not being broken to the downside, keeping DXY in the uptrend. This is a strong indicator of a continuation of a long-term uptrend. Any possible dip to 95 should be bought.

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How can we trade this?

It is a fact that a strong downside resistance for Q2 2025 is 95, and for a downside continuation, it needs to be broken. You can try with a long-trade entry with SL below 95, to exploit the opportunity. For inquiries about account management or copy trading, please write to [email protected] or contact me on WhatsApp or Live chat.

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How can we trade this?

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